Prime Minister Keir Starmer to Chair Cobra Emergency Meeting on Iran War Economic Fallout
Prime Minister Sir Keir Starmer will convene a Cobra emergency meeting on Monday to address the escalating economic impact of the Iran war, with ministers warning that price rises are now "inescapable" for British households. The high-level gathering will focus on mitigating the crisis's effects on energy security, industrial resilience, and global supply chains.
Ministers Rally to Deter Panic-Buying and Stabilise Markets
Cabinet ministers, including Chancellor Rachel Reeves, Foreign Secretary Yvette Cooper, and Energy Secretary Ed Miliband, will join Sir Keir alongside the Governor of the Bank of England. The discussions will centre on the international response to the conflict and its domestic repercussions, particularly regarding the cost of living. Housing Minister Steve Reed has urged the public to avoid panic-buying fuel, stating, "There's no need to ration fuel. People should go around and buy their fuel just like they always would."
Oil Supply Crisis and Price Predictions
Chris O'Shea, chief executive of Centrica which owns British Gas, revealed on BBC's Sunday With Laura Kuenssberg that global oil supplies have already plummeted by 20% due to the conflict. He cited Cornwall Insight predictions of inevitable price increases, noting, "The world uses about 100 million barrels of oil a day. We've lost about 20% of that through the Strait of Hormuz." This disruption has heightened fears over inflation and economic stability.
Government Measures and Political Pressures
Lord Richard Walker, the cost-of-living tsar, has proposed a temporary profit cap to prevent producers and retailers from exploiting the crisis for windfall profits. Meanwhile, the Conservatives have called for scrapping "green taxes" to reduce costs, with shadow housing secretary Sir James Cleverly advocating for opening North Sea oil and gas fields. Sir Keir's recent 20-minute call with US President Donald Trump focused on reopening the Strait of Hormuz, despite Trump's earlier criticism of Starmer's response to the war.
Geopolitical Tensions and Security Concerns
Ministers have reiterated that the UK will not be drawn into a broader Middle East war, but Iran's missile attack on the joint US-UK base Diego Garcia has raised alarms about Europe's vulnerability. Israeli Prime Minister Benjamin Netanyahu warned, "They have now the capacity to reach deep into Europe. They already have fired on a European country, Cyprus." President Trump issued a 48-hour ultimatum on Truth Social for Iran to fully open the Strait of Hormuz, threatening to "obliterate" Iran's power plants if not complied with.
Housing Minister Steve Reed declined to endorse the deadline but emphasised that a swift resolution to the war is crucial for alleviating price pressures. The Cobra meeting underscores the government's urgent efforts to navigate the complex economic and security challenges posed by the Iran conflict.
